--- title: "Allegro MicroSystems grew sales 29% to $277 million without sizing its data center revenue" description: "Allegro's Q2 filing confirms the growth but never states the data center figure the market is paying for, and the stock had already moved 14% over two sessions before the numbers were public." publisher: "The Inference" section: "Chips" published: 2026-10-29T13:10:21.394Z modified: 2026-10-29T13:10:21.394Z canonical: https://theinference.org/article/allegro-microsystems-grew-sales-29-to-277-million-without-sizing-its-data-center-revenue language: en keywords: "Allegro Microsystems, Earnings, Semiconductors, Data Center, Insider Trading" --- # Allegro MicroSystems grew sales 29% to $277 million without sizing its data center revenue > Allegro's Q2 filing confirms the growth but never states the data center figure the market is paying for, and the stock had already moved 14% over two sessions before the numbers were public. [Allegro MicroSystems](https://theinference.org/markets/companies/allegro-microsystems) reported a 29% sales jump, a record data center quarter and a 23% growth guide on October 29, but the filing never states what data center sales actually were [2][4]. ALGM shares had already moved: an intraday gain of 9.8% on October 28 on the 800V data center product launch [2], and a 4.1% close at $35.37 that same day [4]. The two moves compound to a 14% pre-print run [2][4]. ## The numbers behind the label are strong Second-quarter sales rose 29% year over year to $277 million, GAAP EPS quadrupled to $0.12, and the company guided next quarter's sales up 23% at the midpoint, with non-GAAP EPS guided up 80% [1]. Design wins rose nearly 40%, the best since its 2020 IPO, and bookings climbed for an eighth straight quarter [1]. *Chart: **Sales have climbed for seven straight quarters to a record $277 million** Line chart of Allegro MicroSystems quarterly net sales from the quarter ended December 27, 2024 to the quarter ended September 25, 2026, rising from US$177.9 million to US$277 million.* *Allegro net sales by quarter, US$ millions, calendar quarters (the latest is the fiscal second quarter ended September 25, 2026). Sources: SEC filings [5]; GlobeNewswire, October 29, 2026 [1] [5][1]* ## The growth is almost entirely one line item Industrial and Other, the reporting line that carries data center revenue, grew 79% to $104.4 million, up about $46 million [1]. Automotive grew 11% to $172.5 million, up about $17 million [1]. So roughly three-quarters of Allegro's growth came from the line whose fastest driver [the release](https://www.globenewswire.com/news-release/2026/10/29/3391114/0/en/allegro-microsystems-reports-second-quarter-2027-results.html) names only as data center, "which established a new record" [1]. *Chart: **Industrial and Other nearly doubled while Automotive grew 11%** Column chart comparing Allegro's two reporting lines in the quarters ended September 25, 2026, and September 26, 2025, in US$ millions.* *Allegro net sales by reporting line, US$ millions, fiscal second quarters. Source: GlobeNewswire, October 29, 2026 [1] [1]* ## The last public sizing is two quarters old The most recent public sizing, from [company disclosures](https://www.quiverquant.com/news/Allegro+MicroSystems+Gains+as+AI+Data+Center+Push+and+Earnings+Setup+Lift+Sentiment) before this print, put data center at 10% of fiscal 2026 sales and 14% of the fiscal fourth quarter [2]. Nothing in today's release updates that. The market is re-rating an automotive sensor house as an AI power play on a figure last stated two quarters ago. ## The bulls and the sellers are both on the record Bulls can point to an analyst median price target of $55 against the $35.37 close, institutions adding stock including roughly $886 million from JPMorgan, and Rep [3]. Gil Cisneros's purchase of up to $15,000 [3]. Bears hold a trailing P/E of 471.6x against a 41.8x five-year median, GuruFocus calling the stock overvalued, and [seven insider sales with zero purchases](https://www.gurufocus.com/news/9149150/allegro-microsystems-inc-algm-stock-up-41-but-gf-value-says-overvalued-gf-score-87100), including CEO Mike Doogue's $1.4 million sale [4]. ## The next catalyst is disclosure, not demand When Allegro quantifies data center revenue, the AI re-rating either gets a number or loses its label. Until then, the premium rests on momentum and design wins, not on a figure anyone can check. ## Takeaway Allegro's record quarter confirms the growth but withholds the data center revenue figure driving its AI premium, leaving the stock's 14% pre-print run resting on a number no one can check. ## Sources 1. [GlobeNewswire, Allegro MicroSystems Reports Second Quarter 2027 Results, 29 October 2026](https://www.globenewswire.com/news-release/2026/10/29/3391114/0/en/allegro-microsystems-reports-second-quarter-2027-results.html) 2. [Quiver Quantitative, Allegro MicroSystems Gains as AI Data Center Push and Earnings Setup Lift Sentiment, 28 October 2026](https://www.quiverquant.com/news/Allegro+MicroSystems+Gains+as+AI+Data+Center+Push+and+Earnings+Setup+Lift+Sentiment) 3. [Quiver Quantitative, ALGM institutional, insider and congressional activity, 28 October 2026](https://www.quiverquant.com/news/Allegro+MicroSystems+Gains+as+AI+Data+Center+Push+and+Earnings+Setup+Lift+Sentiment) 4. [GuruFocus, Allegro Microsystems Inc (ALGM) Stock Up 4.1% but GF Value Says Overvalued, 28 October 2026](https://www.gurufocus.com/news/9149150/allegro-microsystems-inc-algm-stock-up-41-but-gf-value-says-overvalued-gf-score-87100) 5. [Allegro MicroSystems, quarterly figures from its SEC filings, retrieved 29 October 2026](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000866291) --- Allegro MicroSystems grew sales 29% to $277 million without sizing its data center revenue — The Inference. Canonical: https://theinference.org/article/allegro-microsystems-grew-sales-29-to-277-million-without-sizing-its-data-center-revenue